西方基础会计学.ppt

The balance of Income Summary is then transferred to the owner’s capital account. The balance of the owner’s drawing account is also transferred to the owner’s capital account. The entries that transfer these balances are called closing entries. 4-3 0 33 4-3 0 34 Debit each revenue account for the amount of its balance, and credit Income Summary for the total revenue. Fees Earned Bal. 16,840 Rent Revenue Bal. 120 Income Summary 16,840 120 16,960 4-3 0 Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Bal. 200 Miscellaneous Expense Bal. 455 Income Summary Debit Income Summary for the total expenses and credit each expense account for its balance. 16,960 9,855 Bal. 4,525 Bal. 1,600 Bal. 50 Bal. 985 Bal. 2,040 455 200 2,040 985 50 1,600 4,525 35 4-3 Chris Clark, Capital Bal. 25,000 Chris Clark, Drawing Bal. 4,000 Income Summary 16,960 9,855 7,105 7,105 Debit Income Summary for the amount of its balance (in this case, the net income) and credit the capital account. 4-3 36 Chris Clark, Capital Bal. 25,000 7,105 Chris Clark, Drawing Bal. 4,000 4,000 4,000 37 Debit the capital account for the balance of the drawing account, and credit drawing for the same amount. 4-3 4-3 Step 4 Step 3 Step 2 Step 1 38 0 After the closing entries are posted, all of the temporary accounts have zero balances. 4-3 0 Example Exercise 4-4 The following accounts appear in the adjusted trial balance of Hindsight Consulting. Indicate whether each account would be reported in the (a) current asset; (b) property, plant, and equipment; (c) current liability, (d) long-term liability; or (e) owner’s equity section of the December 31, 2007, balance sheet of Hindsight Consulting. Example Exercise 4-5 After the accounts have been adjusted at July 31, the end of the fiscal year, the following balances are taken from the ledger of Cabriolet Services Co. Terry Lambert, Capital $615,850 Terry Lambert, Drawing 25,000 Fees Earned 380,450 Wages Expense 250,0